Last week, I was invited by Bureau van Dijk in London for a presentation at a conference with the theme of modern credit risk management at international level.

What should we present to an audience of dozens of credit manager ? Also discussing with the head of BvD in Brussels, I thought the best thing would be to show what the main difficulties that a credit risk manager should face are when he/she has to evaluate companies around the world, and how we can help him.

Here you can find the presentation that I did, and now I want to summarize it.

The main difficulties arise from the fact that the credit manager should evaluate a wide variety of standards of information each day. Having a job that involves information on companies operating in various states, the problems arise from:

It might seem an impossible job and extremely complex, and indeed it is. But luckily there are also technical processes to address them. In fact, you can develop,-and we, modeFinance we did it with the MORE credit rating model - models of credit risk assessment that address all of these issues in order to obtain a model of risk that allows the credit manager to deal with his job more easily and get a consistent assessment in different states. The important thing though is to have a model to follow some important guidelines:

With a rating model that follows these guidelines, the credit risk manager will have provisions for a tool that will help him in his work every day, getting the best out of all available information.